How Does Vacant Property Receivership Work in Baltimore City?

Vacant property receivership is a legal process the City of Baltimore uses to assess and clean up issues that are caused by vacant or abandoned houses within the city. For example, some vacant properties can become home to squatters and other individuals who may take advantage of the property to take illicit drugs or perform other criminal activities. This may put homeowners who live in the vicinity of the home in danger depending on who is illegally using a property. If you or a family member is interested in renovating a vacant home that is disrupting the quality of life in a neighborhood, you should contact an experienced Baltimore real estate transaction lawyer today. The dedicated advocates at the Heyman Law Firm possess extensive experience handling a wide range of commercial real estate issues involving vacant properties. Real estate lawyer William S. Heyman explains how vacant property receivership can positively affect your neighborhood in the City of Baltimore.

What is Vacant Property Receivership?

Vacant property receivership is a legal process where Baltimore City’s Department of Housing and Community Development categorizes properties that are a public nuisance and that are vacant. If a property is identified as a public nuisance, it can mean:

• The building is a fire hazard
• The structure is uninhabitable
• The property is affecting the structural integrity of adjacent homes
• The building is having a negative effect on the property values of the surrounding homes
• The building is attracting squatters
• The property is a hotspot for trash and graffiti
• The overall quality of life in the neighborhood is negatively impacted due to the abandoned property

Once the Baltimore’s housing department identifies a vacant property that is a nuisance, the next step is to issue the owner a vacant building notice and appoint a “receiver” to deal with the property. A receiver is a representative chosen by the city to sell, renovate, or destroy the property. The receiver that is appointed is typically a nonprofit organization like Baltimore City’s One House at A Time (OHAAT) organization. This particular organization will sell an abandoned property to a buyer or real estate developer who must rehabilitate the property within a certain amount of time.

Before Baltimore City allows the receiver to sell or rehabilitate the property, the city will allow the owner of the property an opportunity to renovate the home. However, the owner of the property must prove to a court that they possess the financial capability to fund the property rehabilitation.

If the property owner does not have the means to repair the property, the receiver has the discretion to make the following decisions:

• Selling the property to a bidder that has proved they are qualified and skilled enough to renovate the property within a certain timeframe
• Conducting a public auction if a pre-qualified bidder is not available
• Selling the vacant property to the highest bidder

To learn more about how vacant property receiverships are conducted in Baltimore City, you should consult with an experienced Baltimore real estate attorney.

How to Apply to Rehabilitate a Vacant Property

There are a couple of steps you must take if you are interested in purchasing a vacant property with the intention to rehabilitate it. One of the first factors to consider is whether you want to purchase the property as an individual or by forming a business entity like a limited liability corporation.

Once you decide how you wish to purchase the property, you should contact the receiver that legally possesses the property. For example, the non-profit OHAAT may ask for information about your financial situation and whether you have any experience in rehabilitating properties.

Auctions for vacant properties are frequently held in Baltimore City. A potential bidder also has the right to inspect the property before the auction occurs. It is also important to note that the bidding price for vacant properties typically begin around $5,000 and are sold as is. However, these rules may differ depending on the receiver that is in charge of the property.

Our Baltimore Business Advisory Attorneys are Ready to Represent You

If you need assistance rehabilitating vacant homes that are plaguing the citizens of Baltimore City, contact the Heyman Law Firm today. Business advisory attorney William Heyman understands the need to keep Baltimore City safe from the hazards that an abandoned property may present, and we are here to stand with you. Vacant property receivership is helping Baltimore become safer one house at a time. To learn more about the receivership process for vacant homes in Baltimore, call the Heyman Law Firm at (410) 305-9287, or contact us online. Let our attorneys help you improve your neighborhood.